STATE BANK OF INDIA LOCAL HEAD OFFICE, MUMBAI EMPANELMENT OF EXTERNAL CONCURRENT AUDITORS FOR BRANCHES / CPC SITUATED IN THE STATE OF MAHARASHTRA & GO

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1 STATE BANK OF INDIA, Audit Department, L.H.O Synergy 4 th floor, Bandra Kurla Complex, Bandra (East), Mumbai , B State Bank of India, Local Head Office, Mumbai intends to outsource Concurrent Audit of branches to Chartered Accountant firms. OF CHARTERED ACCOUNTAN T FIRMS FOR CONCURREN T AUDIT For application, eligibility criteria and other details please log on to and see under 'Procurement News'. The duly filled in application form in a sealed cover superscribed as "Application for Empanelment for Concurrent Audit" should reach this office on or before 1 st SEPTEMBER 2014 ASSTT. GENERAL MANAGER (AUDIT) andra Kurla ComplexMPANELMENT 1

2 STATE BANK OF INDIA LOCAL HEAD OFFICE, MUMBAI EMPANELMENT OF EXTERNAL CONCURRENT AUDITORS FOR BRANCHES / CPC SITUATED IN THE STATE OF MAHARASHTRA & GOA Applications are invited from partnership Firms of Chartered Accountants of RBI Grade 2/3 situated in the state of Maharashtra & Goa for carrying out Concurrent Audit on full time contractual basis (renewal every year at Bank s discretion, at its selected branches / Credit Processing Centres (CPC) situated in the state of Maharashtra and Goa It will be ensured that partnership firms chosen for engagement as Concurrent Auditors are other than the ones selected for empanelment as Statutory Auditors to eliminate any room for conflict of interest. Last date for receipt of Application : 1 ST SEPTEMBER 2014 Those who are interested may submit : i) Application / Bio-data together with passport size photographs of all partners (as per the format enclosed). ii) Copies of Degree Certificate, Membership Certificate of Institute of Chartered Accountant of India (ICAI). iii) Details of empanelment of Chartered Accountant in the other Banks as Concurrent Auditors. iv) Any other certification obtained, etc., In a sealed cover to the Assistant General Manager (Audit), State Bank of India, Audit Department, Local Head Office, Bandra Kurla Complex, Bandra (East), Mumbai , on or before the last date for receipt of applications. Terms & Conditions : a) Expertise in audit of Banking related areas and experience as concurrent auditors of other Banks in the past will be given preference. b) Preference will be given to locally based partnership firms of Chartered Accountant or proximity to where the Branches / Offices are situated. c) Concurrent audit to be done on daily basis. One trained representative of the CA Firm (Articled Clerk trained by ICAI on concurrent audit / Retired Bank Official) to be available on all days. Chartered Accountant to visit branches / CPCs at least 2/3 times in a week depending on the business and risk profile of the branches/cpcs. 2

3 d) Bank will have right to reject application and Bank s decision in empanelment is final. Also, if the services of Concurrent Auditors are not satisfactory, Bank will have the right to terminate the contract, any time. e) Further, the Bank has opted that clustering of branches/bpr Outfits is to be strictly avoided. Hence, no Chartered Accountant firm selected for concurrent audit shall be allotted more than one branch for the job. f) The Bank will empanel Chartered Accountant Firms having RBI grade 2 & grade 3 for Concurrent Audit job. Preference will be given to those firms having ICAI trained Concurrent Auditors. g) The initial empanelment will be for a period of 1 year and renewed every year, subject to satisfactory work upto 3 years. h) The Concurrent Auditor will be fully responsible for the quality of the audit, timely completion of audit and submission of the audit reports and reporting to controllers on daily basis through Web Based Concurrent Audit Sytem. The scope of Concurrent Audit is given in Annexure-A Selection Process: The applications received within the cut-off date and time will be scrutinized under Basic Eligibility Criteria as detailed above, by the Selection Committee. Those applicants who fulfill the basic eligibility criteria will be evaluated based on experience, reputation, availability of sufficient trained personnel (ICAI Trained), location of the firm in relation to the auditee units. The application not accompanied by all the required details and supporting documents would be liable for rejection. Those applicant who satisfy the requirements and specifications as determined by the Bank as per the terms and conditions of this document shall be short-listed after selection. The Bank reserves the right to disqualify any or all applications on the basis of their responses without assigning any reasons, whatsoever. 3

4 Submission of application: The applicant must provide individual and factual replies to specific questions asked in the application. Documents submitted should be complete in all respects as required. The applicant should submit the application in a single sealed envelope supercribed as Application for empanelment of Concurrent Auditor. Application format is given in Annexure-B which needs to be submitted duly filled in with required particulars. The last date for receipt of applications is 1 st September Please note that applications received after due date or incomplete in any respect are liable to be rejected. The duly filled applications along with the supporting documents should be sent to the following address: The Assistant General Manager (Audit) State Bank of India, Local Head Office, Synergy 4th Floor, Bandra Kurla Complex, Bandra (East), Mumbai SBI is not responsible for non-receipt of completed application within the specified date due to any reason including postal delays or otherwise. Offers by a Third-Party: The applicants are not permitted to authorize their Agents/brokers etc (including individuals and/or third party firms/companies) to either collect or submit the applications/ documents on their behalf. The Bank will summarily reject such requests and arrangements. No sub-contracting of the engagement is permissible. Validity of Offer: The successful applicants have to execute a service level agreement along with annexures including the annexure containing the penalty clause at the time of appointment. The Contract will be valid for one year and renewed every year for a maximum period of 3 years, subject to satisfactory performance. 4

5 Modifications and / Or Withdrawal of Applications: Application once submitted will be treated as final and no further correspondence will be entertained. As no subsequent modification of applications/documents are permissible, the firms are advised to exercise utmost care in preparation and submission of applications/ documents. Payment Terms: The payment for the audit work done will be paid on completion of a month and subsequently on an ongoing basis Secrecy Issues: The empanelled firm and its employees will strictly undertake not to record by any means or to communicate or allow to be recorded by any means or communication to any person or divulge in any way any information relating to the conversations, events, ideas, concepts, know-how, techniques, data, facts, figures and all information, howsoever concerning or relating to the Bank and its affairs to which the audit firm /their employees etc. have access in the course of performance of the contract. The successful applicants will, on award of contract will execute a non-disclosure agreement and declaration of fidelity and secrecy as per the Bank s standard format Annexure-C. All personnel of the Concurrent Auditor, before commencing the Audit have to execute a declaration of fidelity and secrecy as per the format prescribed by the Bank. All the information contained in this document is solely for the purpose indicated in this process. Reproduction of all or any part of this process by any person for any purpose other than for the purpose of responding to this or for any other purpose expressly permitted by this shall be treated as unauthorized and illegal and the Bank reserves the right to take appropriate action in such circumstances. Indemnity of the Bank: The empanelled firm shall indemnify SBI and keep indemnified against any loss or damage that State Bank of India may sustain on account of any unprofessional act causing downtime of mission critical systems, disruption to business operations, data loss, third-party claims on account of violation of patents, trademark, designs and other intellectual property rights, etc. Bank s data, strategies, etc. should not be revealed or shared with any third parties including any other bank. Termination of Contract: The performance of the selected empanelled firms will be continuously reviewed by the Bank in terms of various requirement clauses specified in the Concurrent Audit Manual. Based on the review, if the selected firms fail to satisfy / maintain their commitment with respect to timely conduct of the audit, quality and content of the audit reports, the contract may be terminated by giving one month s notice. SBI s decision in this regard will be final. In case of termination of this contract, the SBI shall have the right to avail services of any other Audit firm to continue 5

6 the process without any let or hindrance from de-paneled firm, whose services are to be terminated and they also has to provide necessary help for smooth switch over. Any work done till such time, working papers and should be handed over to the successor, without any demur. The work should not be disclosed to any other organization/bank. The Concurrent Auditor firm shall not be entitled for any damage including liquidity damage or compensation on account of termination of Contract by the Bank. Other Terms and Conditions: In case any information furnished during the application process is found to be incorrect, SBI will not only summarily reject the application but the applicant may be blacklisted from any future such process with the Bank. SBI may share such information with Reserve Bank of India (RBI) or Indian Bankers Association (IBA) which is the voluntary representative body of all banking institutions in the country, who, in turn, may share the information among its member institutions. Any terms and conditions beyond the scope of this process added by the bidder, whether implicitly or explicitly stated in any of the responses, will be ignored. Disclaimer: There is no commitment or obligations, whatsoever on the part of the issuer of this process, or officials associated with it within the Bank, regarding the implementation for any future plans. Any assumptions made by bidders, on the basis of information shared herein, will be at their own risk and responsibility. Address for Communication: The Address for Communication in respect of any matters related to this is as under: The Assistant General Manager (Audit) State Bank of India, Local Head Office, Synergy 4th Floor, Bandra Kurla Complex, Bandra (East), Mumbai Telephone No: and

7 SCOPE OF CONCURRENT AUDIT Annexure-A 1) Cash: Abnormal receipts and payments, accounting of currency chest transactions. 2) Investments: Investments made by the Bank. 3) Deposits: i. Interest rates ii. Opening of new accounts iii. Know Your Customer and Anti Money Laundering norms. 4) Advances: i. Adherence to the delegated financial powers in both fund based and non-fund based exposures; ii. Pre-sanction processes, obtention of proper documents iii Post disbursement supervision and follow up iv. Problem loan management and follow up. v. IRAC classification 5) Letters of Credit and Bank Guarantees: i Devolvement ii Timely payment of bills and invocation iii. Follow up of overdue bills iv. Adherence of RBI guidelines 6) Foreign Exchange Transactions: i. Accounting of inward and outward remittances ii. Forward contracts iii. Reconciliation of Nostro & Vostro accounts iv. Adherence to RBI / FEMA guidelines and submission of returns 7) 7 Housekeeping: i. Reconciliation of various accounts including office accounts ii. Income Leakage including recovery of charges / Interest application /charging of correct rate of interest iii. Checking of VVRs iv. High value non-home transactions v. Transactions in staff accounts vi. High value inward and outward remittances vii. Changes in home branch of deposit/loan accounts viii. Review of concessions in terms / charges with their approvals ix. Maturity mismatches for calculations of CRAR under Basel II x. ATM failed transactions 8) Other items: i. Correctness of entry of data in the CBS system ii. Interest rate for Bills Discounted iii. Government transactions compliance to RBI / Government instructions iv. Compliance of audit report observations v. Addressing customer grievances vi. Verification of critical returns submitted by the branch (including BMMC) and recovery of excess payments, if any. vii. Concurrent Auditors will verify / authenticate mandatory quarterly certificates in case of A and B category Forex Branches. 9) Any other guidelines/instructions issued from time to time from Govt. Of India, RBI, State Bank of India and/or any other Statutory Authorities. ************* 7

8 ANNEXURE - B APPLICATION FOR EMPANELMENT OF CONCURRENT AUDITOR 1 Name of the Firm 2 Constitution 3 Address with PIN Code 4 Contact Nos. Mobile + Landline + 5 Date of Establishment 6 PAN No. of the firm 7 Registration No. with ICAI 8 Unique Code No.RBI 9 Firm s RBI Category 10 Service Tax Regd. No. of the firm 11 No. of Partners 12 Branches of C.A.firm only in Maharashtra & Goa, if any 12 Experience of Concurrent Audit with SBI (Please give details with supporting documents) 13 Experience of Concurrent Audit with PSBs (Please give details with supporting documents) 14 Additional Qualifications (i.e. CISA/DISA/Con. Audit Course from ICAI 15 Experience in specialized areas like Treasury/FOREX/CPCs & Big Corporate Branches (Please give details with supporting documents) 16 Whether Statutory Auditor for SBI 17 Any other relevant data No. of Brs. No. of Banks No. of years No. of years 8

9 I/We confirm that the information furnished above is true and correct and we have not been de-paneled / Black listed by any organization in the past and we fulfill all the conditions of eligibility for empanelment with SBI as a Concurrent Auditor. I/We have read the terms and conditions stipulated for empanelment as Concurrent Auditors of the Bank and!/we also understand that the Bank has reserved its right to accept or reject the application without assigning any reasons. If selected for empanelment as Concurrent Auditor of the Bank and the offer is accepted. I/We will execute Service Level Agreement in the format given by the Bank. Place : Date : Signature of the applicant with seal 9

10 ANNEXURE C DECLARATION OF FIDELITY AND SECRECY We, do hereby declare, confirm and affirm that we will faithfully, truly and to the best of our skill and ability, execute and perform the duties required of us as Concurrent Auditors of the State Bank of India and which properly relate to the Office position in the said State Bank of India by us. We further declare, confirm and affirm that we will not communicate or allow to be communicated to any person not legally entitled thereto any information relating to the affairs of the State Bank of India or to the affairs of any person having any dealing with the State Bank of India not will we allow any such person to inspect or have access to any books or documents belonging to or in the possession of the Bank and relating to the business of the State Bank of India or to the business of any person having any dealing with the State Bank of India. We lastly declare, confirm and affirm that we are not disqualified for being appointed as auditors of the State Bank of India under provisions of section 226 or any other applicable provisions of the Companies Act, PLACE: DATE: CHARTERED ACCOUNTANT 10